Roku posts quarterly revenue in line with estimates, shares fall

Roku reported third-quarter revenue that was in line with Wall Street estimates, hurt by tough competition and reduced advertising spend from clients, sending shares down nearly 7 per cent in trading after the bell. While ad spending has been shifting from traditional television to streaming, advertisers have remained cautious with their budgets amid economic uncertainty, creating a challenging environment for platforms dependent on ad revenue. Roku also saw a 5 per cent fall in its devices revenue in the third quarter. It reported third-quarter total revenue of $1.21 billion, up 14 per cent from the year-ago period and in line with estimates, according to data compiled by LSEG.